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Michelin to open distribution center in Spartanburg

Called the cap of a “multi-year evolution” of its North American distribution network, Michelin North America Inc. announced plans to consttruct a distribution complex in Spartanburg County.

According to a news release, the company is investing nearly $270 million in a five-building distribution complex that will cover 3.3 million-square-feet.

“We see it as a transformational milestone designed to better serve our customers while optimizing inventories and improving supply efficiency,” said Pete Selleck, chairman and president of Michelin North America, which is based in Greenville, in a news release.

The new facility will be located near the intersection of S.C. highways 101 and 417 just south of I-85. Michelin spokesman Tony Fouladpour said the location made sense for the company.

“We finalized the plans for this complex because we found a location that best met our project’s parameters,” Fouladpour said.

Michelin North America Inc. has approximately 9,000 employees and nine manufacturing locations in South Carolina. The new complex will be close to seven of those locations and the company’s headquarters.

The new center will distribute tires under the Michelin, BFGoodrich and Uniroyal brands and the company said Swisslog Group, a subsidiary of German-based Kuka AG will provide automation for receiving, tire selection, sequencing and shipping in addition to warehouse management software.

Michelin North America said international commercial developer Panattoni Development Co. is handling the development of the location.

The Spartanburg County Council recently approved a fee in lieu of taxes agreement for the location which allowed the project to move forward. David Britt, chairman of the Spartanburg County Council’s Economic Development Committee and Economic Futures Group board, said the county believed it was key to be as responsive as possible on the project.

““We have worked closely with Michelin concerning multiple significant investments over 35 years, during which Michelin has established itself as a great corporate neighbor and citizen of our community,” Britt said, in a news release.

Michelin North America said construction on the new facility is expected to begin later this year with the first phase expected to be completed in late 2017. Full completion of the complex is slated for early 2019.